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Forex - Euro slides lower against stronger dollar

Published 04/27/2015, 08:24 AM
© Reuters.  Euro falls against dollar, Greece worries persist
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Investing.com - The euro slid lower against the U.S. dollar on Monday, as the greenback regained some strength after the previous week's downbeat U.S. data weighed heavily on demand for the local currency and as concerns over Greece’s debt negotiations persisted.

EUR/USD hit 1.0820 during European afternoon trade, the session low; the pair subsequently consolidated at 1.0832, shedding 0.41%.

The pair was likely to find support at 1.0663, the low of April 23 and resistance at 1.0957, the high of April 7.

The dollar had come under pressure after the Commerce Department reported Friday that orders for durable goods, excluding aircraft, fell 0.5% in March, after a downwardly revised 2.2% drop in February.

The headline figure rose 4.0%, beating expectations for a 0.6% gain, but investors focused on underlying weakness in the report.

The data came after recent weak reports on home sales, retail sales and industrial production, adding to signs of a slowdown in economic growth since the start of the year.

The weak data led investors to push back expectations on the timing of an initial rate hike by the Federal Reserve.

Meanwhile, sentiment on the single currency remained vulnerable after euro area finance ministers said Friday that Greece must present a full economic reform plan by early May in order to access any further funding.

The euro was steady against the pound, with EUR/GBP at 0.7165.

In the U.K., the Confederation of British Industry earlier reported that its index of industrial order expectations increased by 1.0 point to a reading of 1.0 this month from March’s reading of 0.0. Analysts had expected the index to rise by 4.0 point to 4.0 in April.

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